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EU votes for payment limits on anonymous crypto wallet transactions

Brian McGleenon
·2-min read
crypto Representations of cryptocurrencies are seen in this illustration, August 10, 2022. REUTERS/Dado Ruvic/Illustration
The new limits prohibit traders from making or receiving anonymous crypto transfers exceeding €1,000. Photo: Dado Ruvic/Reuters (Dado Ruvic / reuters)

EU lawmakers have voted in favour of imposing limits on transactions carried out by anonymous and unverified cryptocurrency users, as part of the bloc's new anti-money laundering (AML) measures.

The measures are meant to prevent cryptocurrencies, non-fungible tokens (NFTs), and the metaverse from being utilised for financial crimes.

The new limits prohibit traders from making or receiving anonymous crypto transfers exceeding €1,000 (£879).

Larger transactions are permitted if the customer's identity can be confirmed or if a regulated crypto provider is involved.

Read more: Crypto live prices

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Crypto transfers between private individuals, such as large payments between friends, will still be allowed.

The proposal considers the use of privacy coins, such as monero (XMR-USD) and crypto mixers, which obfuscate the sender and receiver of cryptocurrency transactions, as additional factors when evaluating money-laundering risks.

The legislation also forbids EU crypto providers from maintaining a correspondent relationship with unregistered or unlicensed foreign cryptocurrency providers.

The proposal was approved after 99 lawmakers voted in favour, eight voted against, with six abstentions.

It is part of legislation connected to the new European Union Anti-Money Laundering Agency (AMLA).

Read more: Rishi Sunak’s ‘NFT for Britain’ plan quietly scrapped after just 11 months

For the new measures to become law both the EU Parliament and the European Council must agree.

The legislation comes ahead of the bloc's 19 April vote on the Markets in Crypto Assets Regulation (MiCA) bill, which brings forth a new licensing regime for crypto and digital assets within the EU.

Watch: Web3: Venture capital still pouring into crypto, claims head of Outlier Ventures | The Crypto Mile

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